1979 (1) TMI 124

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..... .... in the first year and of Rs..... in the second year being the foreign travel expenses incurred on the directors/employees. In the first year the assessee incurred expenditure of Rs....on the foreign travel of its director Shri V and of Rs......on its executive employee Smt. M. In the second year under appeal the assessee incurred Rs.... on the foreign travel of its director Shri R. The assessee's claim for deduction of the aforesaid expenditure was disallowed by the ITO on the ground that there was no necessity of the directors to go abroad in search of customers when the same could have been done by correspondence. He also stated that the directors had gone abroad in connection with meeting their families living in U. K. as regards th .....

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..... is paper book containing the duration of the travels of the said two directors, the nature of work done by them in the foreign countries and the benefit obtained by the assessee. He, therefore, submitted that there is no justification in sustaining the disallowance of Rs....in the first year and of Rs.....in the second year under appeal. Faced with this position, the learned representative for the Department relied on the orders of the AAC and justificated his action. He also submitted that since the statement of the reports filed with the Reserve Bank of India in respect of the asst. yr. 1974-75 was not placed before the ITO, we should not entertain the same at this stage. In this connection, he invited our attention to Rule 29 of the Inco .....

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..... we find from the aforesaid order of the Tribunal for the asst. yr. 1970-71 that the claim of Rs.... incurred on account of the tours undertaken by Smt. M. was not pressed before the Tribunal. Apart from this, the assessee has not produced any evidence to show that the travel undertaken by Smt. M was connected with the business carried on by the assessee. We, therefore, have no hesitation in upholding the order of the AAC on this point. 7. The next common point pertains to the assessee's claim for weighted deduction under s. 35B of the Act in respect of the foreign travel expenditure incurred on the two directors, namely, Shri V. And Shri R. and executive employee Smt. M. We find from the aforesaid orders of the Tribunal that the assessee .....

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